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Guaranteed maximum price. A guaranteed maximum price (also known as GMP, not-to-exceed price, NTE, or NTX) contract is a cost-type contract (also known as an open-book contract) such that the contractor is compensated for actual costs incurred plus a fixed fee, limited to a maximum price. The contractor is responsible for cost overruns greater ...
Construction contract. A construction contract is a mutual or legally binding agreement between two parties based on policies and conditions recorded in document form. The two parties involved are one or more property owners and one or more contractors. The owner, often referred to as the 'employer' or the 'client', [1] has full authority to ...
The contract may include a cost estimate with no guarantee or there may be a Guaranteed Maximum Price (GMP). However, even with a GMP, there can be argument over the scope of work covered by the GMP since the design was incomplete when the contract was executed.
A Guaranteed Maximum Price (GMP) proposal is a cost estimate document and contract amendment construction managers, such as Gilbane Construction, use to establish the maximum amount of money the ...
PALM BEACH — The long-planned redevelopment of historic Phipps Ocean Park will get underway this summer after Palm Beach approved a $30 million contract for construction-related services.
Design costs, permitting, land acquisition, and life-cycle costs may also be evaluated. In delivering pre-construction services, general contractors or construction managers may also be negotiating for project construction services. Often this may be accomplished by agreeing on a guaranteed maximum price (GMP) for the project. The firm then ...
Cost-plus contract. A cost-plus contract, also termed a cost plus contract, is a contract such that a contractor is paid for all of its allowed expenses, plus additional payment to allow for risk and incentive sharing. [1] Cost-reimbursement contracts contrast with fixed-price contract, in which the contractor is paid a negotiated amount ...
Guaranteed maximum price: This contract is the same as the cost-plus-fee contract although there is a set price that the overall cost and fee do not go above. [4] Unitprice: This contract is used when the cost cannot be determined ahead of time. The owner provides materials with a specific unit price to limit spending.